Iconix Brand Group, Inc. reported total revenue for the second quarter of 2012 was approximately $93.6 million, a 5 percent increase as compared to approximately $89.3 million in the second quarter of 2011.
Total revenue includes approximately $5.6 million related to the completion of the company's new joint venture in India.
On a non-GAAP basis, as defined in the tables below, net income attributable to Iconix for the second quarter was approximately $32.4 million, as compared to approximately $32.3 million the prior year quarter. Non-GAAP diluted EPS for the second quarter was $0.45 compared to $0.43 in the prior year quarter. EBITDA attributable to Iconix for the second quarter was approximately $58.4 million, as compared to approximately $58.1 million in the prior year quarter. Free cash flow attributable to Iconix for the second quarter was approximately $51.9 million, an 11 percent increase over the prior year quarter.
GAAP net income attributable to Iconix and diluted EPS in the second quarter of 2011 included a non-cash, non-recurring gain of approximately $21.5 million related to the Company's acquisition of the global master license of the Ed Hardy brand. GAAP net income attributable to Iconix for the second quarter was approximately $28.6 million, as compared to $41.5 million in the prior year quarter and GAAP diluted EPS was $0.40 compared to $0.55 in the prior year quarter.
Six months ended June 30, 2012:
Total revenue for the six months ended June 30, 2012 was approximately $182.1 million, as compared to approximately $181.6 million for the prior year period. EBITDA attributable to Iconix for the six month period was approximately $115.2 million as compared to approximately $116.9 million in the prior year period. Free cash flow attributable to Iconix for the six month period was approximately $99.4 million, a 7 percent increase over the prior year period. On a non-GAAP basis, as defined in the tables below, net income attributable to Iconix for the six month period was approximately $64.4 million as compared to approximately $66.1 million in the prior year period, and non-GAAP diluted earnings per share was approximately $0.88 for the six month period versus $0.88 for the prior year period.
As mentioned above, GAAP net income attributable to Iconix and diluted EPS for the prior period included a non-cash, non-recurring gain of approximately $21.5 million. On a GAAP basis, net income attributable to Iconix was approximately $56.2 million as compared to $73.0 million in the prior year period and GAAP diluted earnings per share was $0.76 versus $0.97 for the prior year period.
EBITDA, free cash flow, non-GAAP net income and non-GAAP EPS are all non-GAAP metrics and reconciliation tables to the respective GAAP measures are attached to this press release.
Neil Cole, Chairman and CEO of Iconix Brand Group, Inc. commented, “We are pleased with our overall performance in the second quarter. Our strategy of building our brands globally is gaining momentum with the launch of our India joint venture with Reliance and our first two direct-to-retail licenses in Europe. Looking ahead, we see continued opportunities to grow the portfolio both in the U.S. and around the world. In addition, with our significant free cash flow and strong balance sheet we plan to continue to deliver increased shareholder value through acquisitions and share repurchase.”
2012 Guidance for Iconix Brand Group, Inc.:
The Company is reaffirming its full year 2012 revenue guidance of $340 to $350 million, its 2012 non-GAAP diluted EPS guidance of $1.65 to $1.74, its 2012 GAAP diluted EPS guidance of $1.48-$1.57, and its 2012 free cash flow guidance of $174 to $181 million. This guidance relates to the existing portfolio of brands and does not include any additional acquisitions.
See reconciliation tables below for non-GAAP metrics. These non-GAAP metrics may be inconsistent with similar measures presented by other companies and should only be used in conjunction with our results reported according to U.S. GAAP. Any financial measure other than those prepared in accordance with U.S. GAAP should not be considered a substitute for, or superior to, measures of financial performance prepared in accordance with U.S. GAAP.
Iconix Brand Group, Inc. owns, licenses and markets a growing portfolio of consumer brands including: CANDIE'S (R), BONGO (R), BADGLEY MISCHKA (R), JOE BOXER (R), RAMPAGE (R), MUDD (R), MOSSIMO (R), LONDON FOG (R), OCEAN PACIFIC (R), DANSKIN (R), ROCAWEAR (R), CANNON (R), ROYAL VELVET (R), FIELDCREST (R), CHARISMA (R), STARTER (R), WAVERLY (R), ZOO YORK (R), and SHARPER IMAGE (R). In addition, Iconix owns interests in the ARTFUL DODGER (R), ECKO (R), MARC ECKO (R), ED HARDY (R) MATERIAL GIRL (R), PEANUTS (R), and TRUTH OR DARE brands.
Unaudited Condensed Consolidated Income Statements
(in thousands, except earnings per share data)
Three Months Ended June 30, Six Months Ended
June 30,
2012 2011 2012 2011
Licensing and other revenue $ 93,646 $ 89,293 $ 182,097 $ 181,649
Selling, general and administrative expenses 34,641 31,662 65,540 63,667
Expenses related to specific litigation - 45 - 92
Operating income 59,005 57,586 116,557 117,890
Interest and other (income) expense, net 12,314 (8,383) 25,442 952
Equity earnings on joint ventures (1,460) (2,517) (2,758) (3,138)
Other (income) expenses - net 10,854 (10,900) 22,684 (2,186)
Income before income taxes 48,151 68,486 93,873 120,076
Provision for income taxes 16,178 23,640 31,021 40,104
Net income $ 31,973 $ 44,846 $ 62,852 $ 79,972
Less: Net income attributable to non-controlling interest 3,388 3,303 6,668 6,997
Net income attributable to Iconix Brand Group, Inc. $ 28,585 $ 41,543 $ 56,184 $ 72,975
Earnings per share:
Basic $ 0.41 $ 0.57 $ 0.79 $ 1.00
Diluted $ 0.40 $ 0.55 $ 0.76 $ 0.97
Weighted average number of common shares outstanding:
Basic 70,085 72,962 71,317 72,865
Diluted 72,216 75,423 73,534 75,396
